What is the range for the estimated Construction and Build Out Costs for an Auntie Annes franchise?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
ed by us and/or the Co-Branded Franchisor. All other fees will be charged by (x) us or the Co-Branded Franchisor, but not both or (y) jointly by both us and the Co-Branded Franchisor (and split between the two of us).
ITEM 7. ESTIMATED INITIAL INVESTMENT
YOUR ESTIMATED INITIAL INVESTMENT: FULL SHOP
| Type of Expenditure | Amount of Expenditure | Method of Payment | When Payments Are | To Whom Payment Will |
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Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 44–54)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, the estimated Construction and Build Out Costs for a standard Auntie Annes shop ranges from $27,000 to $265,000. These costs are paid to contractors as the expenses are incurred and arranged.
The FDD notes that these costs encompass fees paid to a general contractor for building the shop to meet Auntie Annes' standards. Leasehold improvements factored into this estimate include HVAC, electrical work, carpentry, floor covering, and painting. The document emphasizes that the cost of a general contractor can fluctuate significantly based on factors such as the size and condition of the premises, the presence of existing leasehold improvements, the extent and quality of desired improvements beyond minimum requirements, landlord contributions, and local material and labor costs.
The FDD also points out that construction costs can be significantly higher in major metropolitan areas like Boston, Chicago, New York, Los Angeles, San Francisco, Seattle, and Washington, D.C., due to higher local market rates for materials and labor. This means prospective franchisees should carefully research local construction costs and consider these factors when budgeting for their initial investment.